States and the federal government have both exclusive powers and concurrent powers. There is an ongoing negotiation over the balance of power between the two levels.
One reason for the ongoing negotiation over the balance of power between states and the federal government is their exclusive and concurrent powers. Exclusive powers are those powers reserved to the federal government or the states. Concurrent powers are powers shared by the federal government and the states.Only the federal government can coin money, regulate the mail, declare war, or conduct foreign affairs. These powers make a lot of sense: imagine if Wyoming could declare war on Canada, or Michigan could coin the Michigan Dollar. The exclusive powers of the federal government help the nation operate as a unified whole.
The states retain a lot of power, however. States conduct all elections, even presidential elections, and must ratify constitutional amendments. So long as their laws do not contradict national laws, state governments can prescribe policies on commerce, taxation, healthcare, education, and many other issues within their state.